Israel Ready to Nationalize El Al with Potential $150 Million Investment

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Jun 09, 2020 | News | Jerusalem & Area
Israel Ready to Nationalize El Al with Potential $150 Million Investment

The privatization of Israel’s national carrier, El Al Israel Airlines, began in June 2003. Now, following the critical damages sustained by the coronavirus pandemic, including a government ban on flights and the quarantine requirements of arrivals, the company announced it was $400 million in a hole and had to receive massive investments, either through bank loans guaranteed by the Israeli government, or by issuing stocks, or by a combination of both.


On Monday, Keren Turner-Eyal, Director General of Israel’s Finance Ministry, sent El Al a letter stating the loan guarantee they were seeking is now reduced to $250 million, which means the company would have to get the remaining $150 million it needs to get out of the hole by issuing new stocks. The government is even prepared to purchase every stock El Al could not sell, at the stock’s average price in May 2020.


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